POWERED BY MOMENTUM MEDIA
ATO flags SG rate rise to employers
Employers will need to up their compulsory minimum superannuation payments on behalf of employees to 9.5 per cent from 1 July, the Australian Taxation Office (ATO) has reminded.
The ATO said the contributions are calculated on the date employers pay their employees, meaning if this was on or after 1 July, employers need to use the new rate.
Some employers may be confused about the increase since the Federal Government had made a pre-election promise that the rate would not rise.
But the government could not pass legislation through the Senate in time to hold the rate at 9.25 per cent.
This resulted in the 9.5 per cent SG rate becoming legally binding, the ATO said.
The SG rate will stay at 9.5 per cent until 30 June 2018, and will rise by 0.5 percentage points each year until it hits 12 per cent.
The ATO encouraged small businesses that have 19 employees or less to use the free small business superannuation clearing house service, where they can pay their SG in one transaction in one location.
Recommended for you
The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.63 3 y p.a(%)
3
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
5
Plato Global Alpha A
27.76 3 y p.a(%)
